Isn't that just a PlayStation Eye, or maybe two of them? That seemed like a great idea when it was first demoed too, but, aside from Eye of Judgment, very little has come of it. The Wii's motion control has the benefit of being integrated with the system itself. That will attract a lot more third party software than a peripheral, which inherently has a lower install base. I think that's the Achilles' heel of this sort of product. It certainly seems interesting, I'm just trying to point out that everything seems better at E3.
Edit: I think proof that this is nothing but a PlayStation Eye has just been given. Within 24 hours Sony was able to cook up essentially the same demos. I still predict gaming as usual.